Recommendation over payment cuts: JPY 60,888,107 taken from 385 contractorsYou may not cut an agreed price on your own
On October 29, 2026, the Japan Fair Trade Commission issued a recommendation to Maruzen Co., Ltd., a manufacturer and seller of commercial kitchen equipment, finding conduct in breach of Article 4, Paragraph 1, Item 3 of the Subcontract Act as it stood before amendment (prohibition on reducing subcontract payments). Between April 2025 and January 2026 the company deducted a total of JPY 60,888,107 from sums due to 385 subcontractors, labelling the deductions as administrative fees and interest. Maruzen has paid back the full amount. Any company that deducts items from its payments has reason to review its own practice.When you ask another company to make something, cutting the agreed price afterwards without a reason is forbidden by law. On October 29 the Japan Fair Trade Commission said that a maker of commercial kitchen equipment had taken a total of JPY 60,888,107 out of the money owed to 385 partners, calling it administrative fees and interest, and told the company to put its payment practice right. The company paid the whole of that money back.
- (1) OrderOrders placed for manufacture of commercial kitchen equipment, repairs contracted by Maruzen, and transport and installation
- (2) DeductionAmounts deducted from the payments due, labelled administrative fees and interest (April 2025 to January 2026)
- (3) RecommendationThe Japan Fair Trade Commission issued its recommendation on October 29, 2026 (Article 7, Paragraph 2 of the pre-amendment Act)
- (4) ConfirmationConfirm by board resolution that payments will not be reduced where there is no fault on the contractor's side
- (5) RepaymentThe whole of the disadvantage (JPY 60,888,107) was paid
- ×Does not apply: Cutting a price agreed at the time of the order, later and without a reason
- ×Does not apply: Taking a fixed percentage off the payment under names such as administrative fee or interest
- ○Applies: Revisiting the price only where there is fault on the side that took the work